Introduction to NLP in Finance: Sentiment Analysis and Risk Management
摘要
Financial knowledge and understanding have become increasingly important in today’s complex world. The ability to manage money effectively is no longer just a personal skill; it’s essential for navigating the challenges and opportunities of modern life, but not everyone has the ability to understand and manage personal finances effectively. Financial market has undergone different ages, with the advancement in technologies, many automated tools can help even the financial illiterate people to understand the market dynamics. The advent of social media has revolutionized numerous aspects of human life, from communication to commerce. One of the most profound impacts has been on the dissemination and consumption of information, particularly in the realm of finance. To make a good investment decision, effective market surveillance systems are needed, that can analyze information related to a particular stock like financial documents, earning reports, news, market sentiment etc. Financial markets are driven by information, much of which is textual data like news articles, social media posts, and company filings. Financial experts and enthusiasts can now share their knowledge and insights through blogging platforms, podcasts, and video content. This has made complex financial concepts more accessible to a wider audience, empowering individuals to make informed financial decisions. Natural language processing helps in sentiment analysis, risk management, and economic forecasting by analyzing those textual documents. This chapter presents different applications of natural language processing in financial analysis, along with the recent research work conducted in the field.